Unintended consequences - there will be fewer rental units in California.
I believe your opinion is spot-on. Making it more difficult for investors to be responsible landlords (e.g., being able to evict) is not the way to encourage investment in more rental housing. The solution to this problem, of course, will be (more) government housing.
I read a few years ago that in my county, they were thinking of forcing you to rent any rentals you own if you’re not living there 3 months a year, or some other time frame. And if you didn’t, you’d be fined some amount. I think it didn’t pass. Just crazy.